HAMBURG: European wheat futures in Paris were slightly lower on Tuesday as the market consolidated following recent export-fuelled gains in spot prices and ahead of closely watched US government crop forecasts.
Benchmark May milling wheat
on the Paris-based Euronext exchange was down 0.2 percent or 0.50 euros at 189.00 euros ($212.9) a tonne at 1526 GMT.
The contract earlier rose to 190 euros, but as on several other occasions over the past week failed to break chart resistance at that level.
Chicago wheat
eased as better than expected US crop ratings weighed on prices before the monthly world supply and demand report from the US Department of Agriculture (USDA), due at 1600 GMT.
A brisk run of shipments was expected to lead farming agency FranceAgriMer to again raise its export outlook for 2018/19 in Wednesday's monthly French supply and demand forecasts.
A tender announced by Algeria could also bring fresh sales for French wheat in its main export market, although the June shipment period showed Algeria would not be buying more supplies for May after a small purchase.
Traders were monitoring developments in Egypt after sources reported the rejection of a cargo of French wheat for exceeding a limit on traces of ergot fungus.
There was also concern that dryness in France could threaten what have been decent crop conditions this season.
France's farm ministry on Tuesday projected this year's soft wheat area at 5.01 million hectares, up 2.8 percent from last year and close to the ministry's previous estimate of the soft wheat area.
In Germany, cash premiums in Hamburg were little changed, underpinned by a brisk programme of ship loadings in German ports.
Standard bread wheat with 12 percent protein for April delivery in Hamburg was offered for sale at around 6 euros over Paris May, though lower offers of 5 euros over Paris were heard.
"A ship is set to load 50,000 tonnes of wheat in Hamburg believed to be for South Africa, along with others in Rostock, which is supportive," one German trader said. "Old crop German wheat is also looking competitive against Russian Black Sea supplies and even other exporters in the Baltic region."
"The new crop is still looking good with mild weather for the time of year in most of Germany, although dryness is still a worry in some areas."
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